Introduction/Purpose:

Employee Salary Approval in an HR Management System (HRMS) refers to the is to establish a systematic and controlled process for reviewing, authorizing, and managing employee salaries within an organization. Employee salary approval in an HRMS establishes a structured process for managing compensation.

Dependency:

The recording of the Employee Salary Approval typically involves accurate documentation, tracking, and management of salary related information .The dependencies for recording the employee data change request can include the following:

• Gross Salary: The gross salary represents the total amount of money an employee earns before any deductions or taxes are applied. It includes the base salary along with any additional components such as allowances, bonuses, or overtime pay. Gross salary is a key component considered during salary approval to determine the overall compensation package for an employee.

• Currency: The currency field specifies the currency in which the employee’s salary and related compensation are denominated. This field is important for organizations operating in multiple countries or dealing with international employees to ensure accurate calculations and consistency in currency handling.

• Salary Proof or Contract: The salary proof or contract field refers to the documentation or agreement that supports the salary information provided by the employee. It may include documents such as employment contracts, offer letters, salary certificates, or any other evidence validating the agreed-upon salary. This field helps in verifying the accuracy of salary information during the approval process.

• Payment Band: The payment band field indicates the range or category within which an employee’s salary falls. Payment bands are often used to classify salary levels based on factors such as job role, experience, or grade. They provide a structured framework for determining salary ranges and can assist in setting appropriate salary approvals within predefined bands.

• Salary Structure: The salary structure field defines how an employee’s salary is composed and distributed across different components. It outlines the various elements that make up the compensation package, such as base salary, allowances, incentives, or benefits. The salary structure provides a clear breakdown of the different components that contribute to an employee’s overall compensation.

• Effective From: The effective from the field indicates the starting date from which a salary change or adjustment becomes valid. It is the date on which the new salary will be implemented for the employee. This field ensures that the salary approval process takes into account the specific effective date to ensure accuracy and timeliness.

• Payment Method: The payment method field specifies the preferred mode of payment for an employee’s salary. It may include options such as direct deposit to a bank account, physical check issuance, or electronic payment platforms. This field ensures that the approved salary is disbursed to the employee using the chosen payment method.

The dependencies mentioned above help ensure that the employee salary approval is accurately recorded and documented, supporting the organization’s HR practices, compliance requirements, and future reference needs.
The navigation to record a Employee Salary Approval in HRMS system typically involves the following steps:

How To Navigate:

• Click on the main navigation icon which is located on the top right corner of the screen then click on the HR operation section which is located on the left side menus on the screen.

• Click on the Employee Salary Approval section which is located in the Employee Approval under HR operation. After clicking on this link you can navigate Employee Salary Approval Listing.

Listing:

The Employee Salary Approval allows users to view all approved & pending Employee Salary Approval. The key features of the Employee Salary Approval listing is included below:

• Record Filter: Filter option allows users to filter the list of records based on visible columns, such as
  • Employee Name
  • Current CTC,
  • Gross Salary,
  • From date, 
  • To date, 
  • Updated date
  • Approval Status

• Show All Listing Columns: This option allows the user to clear all Filter and display all records on the Listing page.

• Advance Search: This option allows user to filter data with single or Multiple criteria in Column Name with options like
  • equal
  • Not Equal
  • Begins 
  • Does Not Begin with
  • Ends With
  • Does Not End with
  • Contains 
  • Does Not Contain

• Export Data: Selected Record, Current Page record or All records can be exported by users with listed Columns or All Columns to a spreadsheet or other file format for further analysis or reporting.

• Hide/Show Column:
  • This option allows users to customize columns by adding/removing columns to display from the Listing page.
  • In this option user have to select column which they want to view in the list , if the user uncheck/unselect all column then system will give error message that “Please check at least one column”
• Activity Log: In the Activity Log option, the user can view the transaction history of Employee salary Approval, such as

• Revise History: This option allows the user to view the past salary revision history.

Recording & Update:

Updating Employee salary Approval record can be carried out by Updating below Fields

• Current CTC (Cost to Company)*: Current CTC refers to the total cost incurred by the organization for an employee, including their salary, benefits, and allowances. It encompasses all components of the employee’s compensation package. The current CTC is important in the salary approval process as it serves as a baseline for evaluating salary changes, adjustments, or increments.

• Gross Salary*: The gross salary represents the total amount of money an employee earns before any deductions or taxes are applied. It includes the base salary along with any additional components such as allowances, bonuses, or overtime pay. Gross salary is a key component considered during salary approval to determine the overall compensation package for an employee.

• Currency*: The currency field specifies the currency in which the employee’s salary and related compensation are denominated. This field is important for organizations operating in multiple countries or dealing with international employees to ensure accurate calculations and consistency in currency handling.

• Salary Proof or Contract*: The salary proof or contract field refers to the documentation or agreement that supports the salary information provided by the employee. It may include documents such as employment contracts, offer letters, salary certificates, or any other evidence validating the agreed-upon salary. This field helps in verifying the accuracy of salary information during the approval process.

• Payment Band*: The payment band field indicates the range or category within which an employee’s salary falls. Payment bands are often used to classify salary levels based on factors such as job role, experience, or grade. They provide a structured framework for determining salary ranges and can assist in setting appropriate salary approvals within predefined bands.

• Salary Structure*: The salary structure field defines how an employee’s salary is composed and distributed across different components. It outlines the various elements that make up the compensation package, such as base salary, allowances, incentives, or benefits.
  • The user has to choose the salary structure from the given drop-down menu such as Permanent employee, Graduate intern, NYSC, SIWES etc

• Pay Cycle: The pay cycle field specifies the frequency at which employees receive their salary payments. It defines the regular intervals, such as Daily, weekly, biweekly, monthly, or any other predetermined cycle, at which employees are paid. This field helps align the salary approval process with the organization’s pay schedule.

• Effective From*: The effective from the field indicates the starting date from which a salary change or adjustment becomes valid. It is the date on which the new salary will be implemented for the employee. Effective From date should always be the Start date of the Pay Cycle which will revise the salary for the whole month rather than Splitting Salary between a month based on two different Salary Structure.

• Payment Method: The payment method field specifies the preferred mode of payment for an employee’s salary. It may include options such as direct deposit to a bank account, physical check issuance, or electronic payment platforms. This field ensures that the approved salary is disbursed to the employee using the chosen payment method.
  • The user has to choose payment methods from the drop-down menu such as Cash, Bank Transfer, Cheque, or Other.

The user can perform the following actions in this section:

• Update and Submit for Approval:
  • This option allows the user to Update and submit the Employee Salary for Approval.
  • These Employee salary approval records will get saved if No approval flow is defined and if any approval flow is defined it will go for approval to the respective approving authority

• Discard: This option allows the user to discard the record and no changes will get created if adding or changes will not get saved if updating.